The paper aims to find out how much digitalization can give a positive impetus to the involvement of citizens in public administration, increasing the effectiveness of the use of public funds to achieve the goals of socio-economic development. The authors used systemic and hierarchical approaches, as well as software tools and methods of mathematical statistics. The involvement of civil society in the process of public administration within the framework of community budgeting (participatory budgeting) allows for enhancing the participation of citizens in the online budgeting process, monitoring budget expenditures, and developing state (municipal) programs. The authors propose the best forms of participation of civil society in the practice of community budgeting: project initiation; the discussion and prioritization of proposals; selection of the best projects; the opportunity to participate in the implementation of projects; the open nature of the procedures; public control over the implementation of projects.